After section fifty-one of the Principal Act the following sections are inserted: - "51aa- (1.) " (10.) If a company elects that this sub-section shall be applied in relation to the company -

(a)
sub-section (4.) or (6.), as the case may be, of this section has effect as if for the reference to the outgoings of the 1959-60 year there were substituted a reference to the amount that the Commissioner is satisfied represents the annual amount of interest, not being excepted interest, payable by the company as at the fifteenth day of November, One thousand nine hundred and sixty, being interest that, if it were incurred by the company during the year of income ending on the thirtieth day of June, One thousand nine hundred and sixty-one, would, but for this section, be an outgoing allowable as a deduction from the assessable income of the company; and

(b)
sub-section (7.) of this section has effect as if for the reference to the excepted outgoings of the 1.959-60 year there were substituted a reference to the amount that the Commissioner is satisfied represents the annual amount of excepted interest payable by the company as at the fifteenth day of November, One thousand nine hundred and sixty, being interest that, if it were incurred by the company during the year of income ending on the thirtieth day of June, One thousand nine hundred and sixty-one, would, but for this section, be an outgoing allowable as a deduction from the assessable income of the company. "(11.) For the purposes of thelast preceding sub-section, where the Commissioner is satisfied -

(a)
that-

(i)
as at the fifteenth day of November, One thousand nine hundred and sixty, the company was bound by agreement to borrow a sum of money specified in the agreement; and

(ii)
the company has borrowed that sum of money or a part of that sum; or

(b)
that-

(i)
on or before that date, the company made an offer to borrow a sum of money specified in the offer; and

(ii)
under an agreement or agreements arising from the acceptance of that offer, the company has borrowed that sum of money or a part of that sum, and that, if the annual amount of interest payable in respect of money so borrowed were incurred by the company during the year of income ending on the thirtieth day of June, One thousand nine hundred and sixty-one, it would, but for this section, be an outgoing allowable as a deduction from the assessable income of the company, the Commissioner shall include that amount in the amount as to which he is satisfied under paragraph (a) or (b) of the last preceding sub-section, as the case requires.